Top 10 Significant Threats Confronting Businesses and Institutions Today
In the second quarter of 2025, the Reputation Risk Index, commissioned by Global Situation Room, has revealed a significant shift in the risks confronting companies. The top threat now is escalating geopolitical competition driving advanced cyber threats, including AI-enhanced attacks [5].
The Global Risk Advisory Council, which includes more than 100 former heads of state, C-suite executives, and public affairs leaders from around the world, conducted the research between June 9 and June 29, 2025. The Index defines Disinformation as the deliberate spread of false or misleading information which can harm credibility or reputation.
Comparatively, in Q1 2025, the Reputation Risk Index showed a focus on trade policy uncertainty, tariff impacts, economic recession risks, and business confidence drops linked to tax burdens and slower sales growth [1][2][3]. This indicates a possible evolution where reputation risk in Q2 is increasingly dominated by geopolitical and cyber security threats, possibly superseding or intensifying from earlier economic and trade-related risks.
Disinformation rose to the #1 spot in the Reputation Risk Index in Q2, replacing the misuse of AI as the top-ranked threat [2]. Other significant risks identified include Data privacy violations, Corruption, Organizational ethics failures, Major operational disruptions, Controversies involving CEOs, Ties to China, and Climate change/environmental harms. Data privacy violations are defined as violations of a person's right to control how their personal data is collected, used, or shared.
The misuse of AI dropped out of the top ten risks in the second quarter of the year. Some experts, like Lauryn Warnick, CEO at Villain Branding, identified a disconnect between brand and business strategy as a significant risk. Others, such as Pete Srodoski, a business coach, identified misalignment at the leadership level as a significant risk, while Patrice Williams-Lindo, CEO of Career Nomad, identified denial by corporate leaders about basic realities as a significant risk.
The Reputation Risk Index shows that risk triggers can vary depending on geography, politics, and other factors. For instance, Amrita Bhasin, co-founder and CEO of Sotira, identified tariffs and increased duties as a significant risk for her company. In the U.S., the 10 greatest risks to companies, according to the Index, are ranked as follows: Disinformation, Data privacy violations, Corruption, Organizational ethics failures, Major operational disruptions, Controversies involving CEOs, Ties to China, Climate change/environmental harms.
In conclusion, the Q2 2025 Reputation Risk Index highlights a shift towards greater emphasis on geopolitical and cyber-related reputation risks. Companies must be vigilant and proactive in addressing these risks to maintain their reputation and protect their business interests.
- In light of the Reputation Risk Index's findings, companies must prioritize crisis management strategies to tackle the escalating geopolitical competition and advanced cyber threats, including AI-enhanced attacks, which pose significant crisis risks.
- As the Q2 Reputation Risk Index shows, the focus has evolved from economic and trade-related risks to encompass geopolitical and cyber security threats, necessitating financial, business, and technological efforts in crisis management to address these new risks and maintain a strong reputation in the face of growing crisis threats.
